The Tornado Cash trial has been a focal point for the crypto community, with high-stakes implications for developers of noncustodial Bitcoin and other crypto technologies, as well as privacy-preserving software. Amanda Tuminelli, executive director and chief legal officer for the DeFi Education Fund, highlighted the significance of the trial, particularly concerning the charges against Tornado Cash co-founder Roman Storm.

Before the verdict, Tuminelli provided a detailed overview of the three charges against Storm, focusing deeply on the accusation of conspiracy to operate an unlicensed money transmitting business. As an expert on 18 U.S. Code § 1960, the federal law prohibiting such operations without a proper license, she argued that Storm had not violated this statute in creating and operating Tornado Cash, an Ethereum-based crypto mixing service. Tuminelli also discussed legislative efforts like the CLARITY Act and the Blockchain Regulatory Certainty Act (BRCA), which aim to protect developers of “non-controlling” (noncustodial) crypto technology by stipulating they do not require money transmitting licenses.

Further concerns raised by Tuminelli included the Department of Justice’s (DoJ) shift away from 2019 FinCEN guidance, which she believes threatens innovation in the crypto space and could lead to continued prosecution of developers like Storm. This stands in contrast to a memo from U.S. Deputy Attorney General Todd Blanche, who had stated the DoJ would stop targeting crypto entities, including mixing and tumbling services, for the acts of their end users. The DeFi Education Fund actively supported the legal discourse by submitting amicus briefs for both the Tornado Cash and Samourai Wallet cases, though the Tornado Cash brief was ultimately rejected by the court.

In a significant development, the Tornado Cash trial concluded in the Southern District of New York (SDNY) with Roman Storm being found guilty on the charge of conspiracy to operate an unlicensed money transmitting business. The jury, however, did not reach a unanimous verdict on the other two counts: conspiracy to commit money laundering and conspiracy to violate sanctions. The guilty verdict on the money transmission charge now leaves Storm facing a potential sentence of up to five years in prison.

Following the verdict, the prosecution moved to remand Storm into custody, asserting he was a flight risk. However, Judge Failla rejected this motion, swayed by the defense's arguments that Storm had strong ties to the U.S., including his home being tied to a $2 million bail bond, his daughter and girlfriend residing in the U.S., and his parents being green card holders. The judge noted the